N.J. Admin. Code § 7:1F-2.5

Current through Register Vol. 56, No. 21, November 4, 2024

Section 7:1F-2.5 - Third-party evaluation

(a) The owner and operator of an underground storage cavern system shall engage a third party to independently review the feasibility study as required at N.J.A.C. 7:1F-2.1, the design and construction submittals as required at N.J.A.C. 7:1F-2.2, and the process hazard analysis as required at N.J.A.C. 7:1F-2.3.

(b) The owner and operator shall determine and document that the third party meets the following competency and independence requirements:

1. The third party shall be knowledgeable regarding geologic formations and product attributes necessary for the review of the feasibility study and process hazard analysis;

2. The third party shall be experienced with the design and construction of cavern systems and applicable, accepted industry standards;

3. The third party shall act impartially when performing any evaluation activity pursuant to this chapter;

4. The third party shall receive no financial benefit from the outcome of its evaluation beyond that for the evaluation itself;

5. The third party shall not have conducted any past research, development, design, construction, or consulting services for the owner or operator within the two years prior to being engaged by the owner and operator. For purposes of this requirement, consulting does not include performing or participating in third-party evaluations pursuant to this chapter;

6. The third party shall not provide any business or consulting services to the owner or operator, including any advice or assistance to implement the findings or recommendations of the third party's evaluation, for a period of at least two years following the submission of the evaluation; and

7. The third party shall sign a conflict of interest statement certifying that it and its personnel shall comply with the provisions at (b)3,4, 5, and 6 above and shall not accept future employment with the owner or operator for a period of at least two years following submission of the third party's evaluation.

(c) The owner and operator shall submit documentation to the Department, prior to the submission of any evaluation report and as part of a permit application pursuant to N.J.A.C. 7:1F-4, demonstrating that the third party meets the competency and independence requirements at (b) above.

(d) The owner and operator shall ensure that the third party:

1. Manages the evaluation and participates in the initiation, design, implementation, and reporting of the evaluation;

2. Determines the appropriate roles and responsibilities for the personnel involved in the evaluation;

3. Prepares an evaluation report; and

4. Certifies the evaluation report and its contents as meeting the requirements listed at (e) below.

(e) An evaluation report shall:

1. Identify all personnel of the third party participating in the evaluation, including names, titles, employers, and/or affiliations, and summaries of qualifications;

2. Include an evaluation of each component of the feasibility study, design specifications, and process hazard analysis required at N.J.A.C. 7:1F-2, and identify any compliance, design, or performance deficiencies;

3. Describe, with specificity, the documents or materials reviewed, and the review methods and calculations used; and

4. Include the certification required at N.J.A.C. 7:1F-1.8.

N.J. Admin. Code § 7:1F-2.5

Adopted by 55 N.J.R. 905(a), effective 5/1/2023